Members approve credit union merger in Alabama
Two Alabama credit unions are set to join forces following a vote from the membership of Alabama Rural Electric Credit Union to merge into Alabama One CU.
Montgomery-based Alabama Rural Electric will function as a division of Tuscaloosa-based Alabama One while its board operates as an advisory committee working toward the combined institution’s strategic vision.
The merged credit union will serve consumers across 57 counties, with a potential membership of more than 500,000 households and 100,000 businesses. Alabama Rural Electric CU members will gain access to online and mobile banking services, auto loans and mortgages, credit cards with rewards and more.
The deal is expected to close before the end of Q2.
“In our discussions with the Alabama One team, we immediately saw the benefits and opportunities to offer a full-scale and modern banking experience to our members,” Jeff Hodges, chairman of Alabama Rural Electric CU, said in a press release.
“And more importantly, Alabama One recognized and embraced the value of our credit union — such that we will continue to operate as Alabama Rural Electric Credit Union, as a division of Alabama One,” Hodges added.
The combined institution will serve nearly 70,000 members with almost $700 million in assets.
Alabama Rural Electric posted a net income of just over $206,000 in 2018, a decline of about 8.5% from one year prior.